Enac head says important to respect EC rules with Alitalia

Authorities warned to be 'vigilant' in investment deal

(ANSA) - Rome, April 7 - European regulations concerning
airline investment and control are important in the case of the
UAE's Etihad Airways and Alitalia, and must be carefully
followed, the president of Italy's national civil aviation
authority said Monday.

Vito Riggio, president of Enac, was commenting on reports
that the European Commission is closely watching a proposed
investment by Etihad in Italian flag-bearer Alitalia.

Last week, the EC warned Italian authorities to be sure to
follow EU rules on ownership and control of European companies,
and investments involving carriers from countries outside of
Europe.

Riggio suggested that this was appropriate in the case of
Etihad's proposed deal with Alitalia, as it involves several
subsidiary carriers as well.

"It's the first time that a company outside Europe enters
(such a deal with) a large European company," said Riggio on the
sidelines of a seminar.
"It's correct that the Commission will present the rules of
the game and the players respect them," he added.

The Abu Dhabi-based airline is expected to make a formal
offer to buy as much as a 40% stake in its Italian counterpart,
the equivalent of a much-needed capital injection of 350 million
euros.

The Gulf carrier is vying to broaden its network in Europe.

Etihad has been expanding aggressively into Europe and
Alitalia would give it a further foothold in a lucrative market.

After buying 29% of Air Berlin, Germany's second-largest
airline, in 2011, Etihad has taken stakes in carriers across the
world, including Air Serbia, Aer Lingus, Darwin Airlines, Virgin
Australia, Jet Airways and Air Seychelles.
"The warning emphasizes that companies outside Europe may
not have the majority in European companies," Riggio said.

On Thursday, Alitalia CEO Gabriele Del Torchio said the due
diligence phase with Etihad was almost complete.